RECO’s Column on Escalation Clauses

Memorandum

 

To:                  Board Presidents

Board Executive Officers

Board PAC Chairs

Board GR Staff

 

Cc:                  OREA Government Relations Committee

 

From:             Matthew Thornton

Vice President, Public Affairs & Communications

 

Date:              June 6th, 2017

Re:                  FYI – RECO’s Column on Escalation Clauses

 

Delivery:         Email

 

Last week, RECO sent a communication on escalation clauses to all registrants. OREA received a number of complaints from our members about this communication. In response, President Ettore Cardarelli wrote to RECO (enclosed) expressing OREA’s concern that the article implied escalation clauses were permissible in Ontario.

 

OREA’s message to RECO is simple:

 

“RECO’s role is to provide clear direction to registrants on regulatory issues, not sow confusion on matters that have significant consumer protection implications.”

 

OREA is calling on RECO to immediately set the record straight and issue a clarification to all registrants.

 

If you have any questions, please do not hesitate to contact me at mthornton@orea.com or 416-385-6624.

2017_06_05_Letter to RECO_Escalation Clauses